Reason-Codes

Introduction

Arcum's solution empowers you with valuable "reason codes," revealing the key factors behind a merchant's likelihood to churn. Through careful evaluation of data variables with the highest predictive weight, we provide the critical insights you need.

Here are the eight most common reasons why an account may leave your portfolio, along with recommended actions. We always recommend starting with a soft touch, such as a phone call or email, to proactively engage with the merchant. This initial outreach aims to assess their satisfaction level and determine if further action is necessary.

At Arcum, we believe that understanding the "why" is the foundation for effective retention strategies. Let our reason codes be your guide in creating personalized approaches to retain your valuable merchants with confidence.

The Reason is displayed within the merchant detail view - after clicking the merchant’s name within the Retention View.

Type of Churn: Internal

Reason Code	Description	Recommended Action
Agent	The agent in charge of signing up the merchant account is experiencing higher than usual churn when compared to other agents.	Call the merchant without involving the agent. This should be a simple courtesy call checking how the merchant is doing with their current agent.
Pricing	Merchant is priced above the average rate for merchant with similar characteristics, i.e. similar size, industry code, or location.	Provide a courtesy call to the merchant. Change to a different pricing type like a cash discount or a surcharge program. As a last resort, a pricing revision should be considered.
Product	Merchant POS system may be older or experiencing issues such as outages or an increase in chargebacks.	Replace product or POS with a newer solution, offering the merchant a chargeback mitigation tool.
Service	Merchant support calls have significantly changed from their historical patterns.	Provide merchant with a client satisfaction survey. If they score below a certain threshold, then a call should be given.

Type of Churn: External

Reason Code	Description	Recommended Action
Seasonality	The merchant may be experiencing seasonal fluctuations in their business which may cause them to reevaluate their merchant services provider.	Consider providing access to capital through a loan/merchant cash advance, placing the merchant on a surcharge or a cash discount program.
Microeconomics	The merchant is experiencing microeconomic issues in their zip code, state or industry.	Consider offering products that will help the merchant streamline or improve their operations, access to capital through a loan/merchant cash advance, placing the merchant on a surcharge or a cash discount program.
Macroeconomics	Macroeconomic data like unemployment, inflation rates or cost of borrowing capital may be deteriorating across the country.	Consider providing access to capital through a loan/merchant cash advance, placing the merchant on a surcharge or a cash discount program.
Cashflow	The merchant is experiencing cashflow issues. This can be due to the fact that they are smaller in size than the average merchant in your portfolio (micro merchants).	Consider reaching out to the merchant via a phone call or email to let them know about products you offer that could help them boost sales.

Reason Codes

Introduction